CV NEWS FEED // The Diocese of Rochester hopes to finalize an abuse settlement with victims this month after four years of court proceedings.
The state of New York passed a law in 2019 called the Child Victims Act that disbanded the statute of limitations for abuse cases, allowing adults who were abused as children to sue their former abusers. A month after the law went into effect, the Diocese of Rochester filed for Chapter 11 protection.
At least 485 individuals filed claims against the Diocese of Rochester, alleging abuse at the hands of priests or other diocesean employees.
For the past four years, the diocese has been working with lawyers, parishes, survivors, and insurance companies to construct a payment plan. So far, the diocese has spent $12.3 million to pay lawyers, accountants, and consultants working on the case.
In September, the diocese, the survivor committee, and insurers struck a deal to establish a $127.35 million trust fund, out of which survivors would be paid.
However, Continental Insurance Co., an insurer for the dioceses, remains at odds with the reorganization plan. The survivors committee, a committee organized by the government to represent all survivors who have filed suit, does not find Continental’s proposed contribution acceptable.
Under the proposed plan, the diocese and its parishes would contribute $55 million to the trust fund, and then the diocese’s right to collect from Continental, their insurer, would be left to the claimants, who could pursue the insurance company in state court.
Continental lawyers proposed that the insurance company would pay $75 million into the trust fund, and then individual claimants would not be able to take court action against the company.
That plan comes after Continental and the diocese agreed that the insurance company would pay $63 million. The claimants said that both of these proposed plans are inadequate and fall short of what the diocese and other liability carriers have agreed to pay.
The first hearing for the case is set to take place on December 8. Attorneys hope to have the judge declare the first deal, in which Continental would pay $63.5 million, invalid.
However, attorneys for Continental maintain that the deal is still valid, as the diocese shouldn’t have begun negotiating with other insurance companies.
“It is beyond legitimate dispute that the diocese’s decision to seek approval of its reorganization plan was a material breach of its obligations under the Continental Settlement,” Continental attorney Jeffrey Dove said in the filing.
Continental filed a separate bankruptcy claim against the diocese, seeking to recover compensation for extra expenses that the insurance company has incurred and possibly will incur as a result of the diocese withdrawing from the initial $63.5 million deal.
This case is to be heard in late January. As for the abuse survivors suite, the court could reach a decision by December 19th, deciding whether the proposed plans could work. The 485 survivors would then have the opportunity to vote on the proposed plans.
